What is the main purpose of an organisational chart?
Correct answer: B. To display formal relationships and reporting lines
- A. To measure the profitability of each department
- B. To display formal relationships and reporting lines
- C. To describe the personal friendships among workers
- D. To list the prices of organisational products
Explanation
An organisational chart presents the formal structure, including positions, departments and reporting relationships. It does not normally show informal social relationships or financial performance.
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About Organisational Structure and Management
Organisational structure explains how authority, responsibility, communication and tasks are arranged through functional, divisional, matrix and flat designs. Management covers planning, organising, staffing, directing and controlling, alongside delegation, span of control, centralisation, decentralisation and coordination.
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